• The political relations between the countries may influence the sales and marketing of the IPhone in the market and it also affects the production and assembling process. • War, terrorism and other similar political factors can be a serious threat to the apple IPhone market. Economical factors: • One of the major influences for the IPhone products is recession. There is a serious condition of recession going on in the market. As apple is placed as a luxury product, people are giving it a second thought.
The competition between Apple and Samsung is great thing for consumers because they are forcing each other to improve their products year after year. Competition will always bring out the best and it has certainly been proven after we continuously see how Apple and Samsung evolve. If there was no competition and there was only one phone company, the seller would be able to charge a higher price and offer less quality of their smartphones. We see this in almost every aspect as well with restaurants, clothing brands, music artists. It’s because of competition why they all strive to consistently improve their
However, Apple’s company also is the most powerful and drive loyalty through its unique ecosystem and proprietary operating software among customers. Recently, Samsung started running ads mocking Apple’s users. They takes fight to Apple with mobile wallet strategy because of the Samsung has been threatened. Following this situation, it’s time that Samsung starts focusing of its effort on mobile payment (Samsung Pay). Apple Pay might be making billions of dollars, but that doesn’t mean Samsung can follow suit.
With the rise of globalization, consumers have become more ethical and ethics oriented. They want their favourite brand to play a vital role in the betterment of the society as a whole. They always expect from their favourite brand to be socially responsible. Following the Galaxy Note 7 had to be recalled after dozens spontaneously caught fire because of defective batteries, Greenpeace, a non-governmental environmental organization has been questioning Samsung for failing to detail how it will dispose the millions of Galaxy Note 7 it’s recalled from around the world. If Samsung chooses to dispose them, it would create an equivalent of about 28 shipping containers of toxic waste.
One of the most important caricaturists of Samsung products in my opinion is that the consumer can personalize the product in order to achieve their needs, in the other hand, Apple a competitor is “one-to-all product”. ALTERNATIVE STRATEGIES Samsung can have some strategic alliances with local partners in order to understand the regional tastes and after they have understand the know-how of the region, thy might be able to buy the regional company in order to take advantage of the EOS he can achieve by themselves. Samsung might be interested in have different agencies if the distance between cultures are big, and not e only with one agency, like he is doing now, this in order to achieve a more deep understanding of the market and develop products that fit the market. One of the most important products from Sony, the principal competitor, are the videogames and consoles, such as FIFA and Play station. Samsung is not investing or have a product in this category, it might be an important and interest invest they can do in order to compete and take a part of the share of ths product
Ansoff’s Matrix is an analytical tool that helps mangers to choose and devise various product and market growth strategies. product Low High existing market penetration product development market new market development diversification This is a low risking growth strategy as businesses choose to focus on selling existing products in existing market like for Samsung to increase market share of galaxy s6, Samsung can achieve this by improving advertisement to enhance the desirability of the product in addition to attract more customers. It’s a medium risk growth strategy that involves selling existing products in new markets. Samsung can establish its product galaxy s6 to new customers. Samsung can do this by new distribution channels as selling the products overseas to their new customers.
These threats should be reduce in order to improve company’s financial performance. The tough competition in the industry is partly because of the aggressiveness of the company. Apple competes with firms like Samsung which also uses rapid innovation strategies in the company. Due to the aggressive behaviour of competing firms, it is necessary important for company to have strong fundamentals for maintaining the competitive advantage. Furthermore, Apple also faces the threat of imitation of its products.
Competitive advantages are conditions that allow a company to produce a good or service at a lower price or in a more desirable fashion for customers. According to SWOT, firms that use their internal strengths in exploiting environmental opportunities and neutralizing environmental threats, while avoiding internal weaknesses, are more likely to gain competitive advantages than other kinds of firms. Samsung in first place build a name for itself. Build a name is not that easy. Samsung had lots of companies that called Samsung like; Samsung Life Insurance, Samsung Chemical, Shipbuilding, and petrochemical industries.
Apple also identified a potential consumer need and developed the iPad that took the market by storm. By anticipating the needs of the consumer before its competitors and coming up with innovative products to cater to those needs, Apple ensured that it strengthened its market position. Process innovation Process innovation embraces quality function deployment and business process reengineering (Cumming, 1998). It provides the means for safeguarding and improving quality of products as well as saving costs. The cost reductions may be passed on to customers in the form of lower prices thereby adding value, or they may not be passed on thereby increasing the profit
Uncontrollable problems such as geopolitical uncertainties, war against terrorism, authority to work & health issues can affect the sale of tablet. 2. Apple, Samsung & other tablet manufacturers has manufacturing & assembly plants in China, Korea, Ireland, & if any of these countries face political instability which delay the manufacturing process will affect the consumer base of that particular tablet. 3. Patent dispute within the manufacturers & competitor such as that of between Apple & Samsung in which Apple filed a suit against Samsung Galaxy tab 10.1.As far as Apple & Samsung are involved in litigation in 9 different countries.